Public Oversight Board (POB)
What is a Public Oversight Board
Accounting holds an important responsibility for companies and professionals in the United States. Most investors, regulators, and public rely on certified public accountants to prepare financial statements for corporations that are detailed and credible. But equally, there are restrictions and governance of the accounting profession and the accounting body to regulate itself. To maintain this self-regulation the AICPA or the American Institute of Certified Public Accountants developed a self-regulating multi-level system that follows the exact standards of quality control. The public oversight board plays a major role in this system. Their role is attached to that of the Securities and Exchange Commission Practice Section.
History of the Public Oversight Board
The public oversight board was created in the year 1977 by the AICPA in the USA. The board is private based independent governing body that reports and monitors the various accounting profession’s programs that are self-regulatory programs for independent auditors who are registered with the Securities and Exchange commission. There is a much needed improvement coming towards the board that will improve and strengthen the policies of the board.
As the board is independent it can do all the right things. They can hire staff members, compensate them, choose successors of business and even choose the right heir to their chair. The POB has 5 members. They are nonaccounting professionals. They all represent the board’s vision of professional and regulatory experience. The first board meeting was help in the year 1978. Usually the team meets around 8 times a year.
Activities of Public Oversight Board
The board has certain activities including organizing, advising, monitoring, studying and consideration. Let’s discuss in details to what their real activities are. When it comes to organization, they define roles and hire people. They have the right to advise on matters of policy for the peer review program. They can also monitor peer review initially. They can also study services and scope that are provided by CPAs and accounting firms. They can eventually report on the subject. If there is a possible audit failure, they should ask the question to their board members on what possible steps they might have to take.